EUROPEAN UNION: ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Catherine Moreddu

Email: catherine.moreddu@oecd.org

Tel :

(33-1) 45 24 95 57

Fax :

(33-1) 45 24 18 90

DEFINITION AND SOURCES

            Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes with specific sources indicated in square brackets. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures. "MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table 2.

            Market Price Support (MPS) and CSE by commodity in Table 2 are calculated for the following commodities: common wheat, durum wheat, maize, barley, oats, rice, sugar, milk, beef and veal, pig meat, poultry meat, sheep meat, eggs and potatoes. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

            Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

            European Union (EU) corresponds to EU-12 for 1986-94 and to EU-15 from 1995 onwards, and includes ex-GDR as from 1990. From 2004, parallel estimations are presented for EU-15 and EU-25. Levels of production and consumption are on a crop year for crops and on a calendar year for livestock products. For example, 2000 production and consumption data for crops refer to the crop year 2000/01. Producer price and reference price for all products are on a calendar year. Budgetary payments are on a fiscal year basis.

            EAGGF Guarantee Fund expenditures: Spending under the EAGGF Guarantee fund covers direct payments to farmers, market intervention measures, export refunds, as well as co-financing with national budgets for agri-environmental, afforestation and early retirement measures. With the Agenda 2000 CAP reforms, the EAGGF Guarantee fund has become almost the only source of funding for all agricultural expenditure. Payments and levies for cereals in fiscal year t+1 are allocated to the PSE in year t. For example, 2000 refers to fiscal year 2001.

            EAGGF Guidance Fund expenditures: The EAGGF Guidance fund section, which is one of the EU's Structural Funds, co-finances measures to assist structural change in the agricultural sector and to promote rural development. Specific measures include investment aid, schemes to help young farmers set up for the first time, training activities, support for processing and marketing of agricultural and forestry products and rural infrastructure projects. With the Agenda 2000 CAP reforms, the EAGGF Guidance fund finances rural development measures under Objective 1 (regions which are lagging behind) and the EU rural development initiative (LEADER PLUS).

            National policies: Expenditures by EU member States (national contribution to EU payments or pure national), mainly on a fiscal year basis, were, as far as possible, disaggregated into TSE categories. Notwithstanding the progress made, the degree of detail still varies across countries and policy coverage is not yet comprehensive, particularly for those countries for which sub-national measures are important.

 

Table 1. EUROPEAN UNION: Total Support Estimate

 

Definitions:

I. Total value of production (at farm gate): total agricultural production valued at farm gate prices, i.e. value (at farm gate) of all agricultural commodities produced in the EU [1].

1. Of which share of common commodities (%): share of commodities for which MPS is explicitly calculated (in Table 2) in the total value of agricultural production.

II. Total value of consumption (at farm gate): consumption of all commodities domestically produced valued at farm gate prices, and estimated by increasing the value of consumption (at farm gate) of the MPS commodities according to their share in the total value of agricultural production [(II.1) / (I.1) x 100].

1. Of which MPS commodities: sum of the value of consumption (at farm gate prices) of the MPS commodities produced in the country as indicated in Table 2.

III.1 Producer Support Estimate (PSE): associated with total agricultural production, i.e. for all commodities domestically produced (Sum of A to H, when negative, the amounts represent an implicit or explicit tax on producers).

A. Market Price Support: on quantities domestically produced (excluding for on-farm feed use -- excess feed cost) of all agricultural commodities, estimated by increasing the MPS for the common commodities according to their share in the total value of agricultural production [(A.1) / (I.1) x 100].

1. Of which MPS commodities: sum of the MPS (net of price levies and excess feed cost) for the MPS commodities as calculated in Table 2.

B. Payments based on output

1. Based on unlimited output

Arable crops

Market bonus for oilseeds (Budget item B1-1070 in the 1998 EC Budget): payments per tonne to producers for covering the orderly marketing of soyabeans, rapeseed and sunflower seed pursuant to Article of Reg. 1765/92.

Aid to small cereal producers (1992-93) (Budget item B1-1031 in the 1995 EC Budget): payments per tonne to small cereal producers.

Agri-monetary aid (Budget item B1-390 in the 1998 EC Budget): Payments to farmers, processors and traders in countries with strong currencies following the 1995 reform of the agri-monetary system (Reg. 2611/95); subject to a ceiling per country, degressive and temporary (three years). As a result of the introduction of the single currency on 1 January 1999, the agri-monetary system was reformed involving, in particular the abolition of the "green rate" and the introduction of transitional measures to deal with compensation for reduction in income arising from the introduction of euro to all EU Members (Reg. 2800/98; Reg. 3813/98). As disaggregated data are not available, information from EU Members was used to allocate the payments to different categories. 45% are allocated under B.1 (payments on unlimited output), 35% under E.1 (payments based on variable inputs), 10% under L (infrastructure) and 10% under M (marketing).

Rice

Production aid for indica rice (Budget item B1-1857 in the 1996 EC Budget): payments per tonne to encourage rice growers to switch from the traditional round/medium grain production to certain varieties of rice of the Indica type (Reg. 1418/76, Art. 8(a); Reg. 3878/87, Reg. 2580/88).

Other intervention (Budget item B1-1859 in the 1998 EC Budget) (1986-91): a degressive production-linked payment to Portuguese rice producers, based on the previous year’s production.

Dairy

Non-marketing and herd conversion schemes (Budget items B1-2060 in the 1998 EC Budget): under the non-marketing scheme, producers accepting not to deliver milk for a five year period, receive payments based on their deliveries in the previous twelve months. Under the conversion scheme, producers guaranteeing to convert from dairying to beef or sheep over a four year period receive payments. These two schemes became collectively known as "SLOM".

POSEIMA (Reg. 91/315) (Budget item B1-2511 in the 1998 EC Budget) and Smaller Aegean islands (Reg. 2019/93) (Budget item B1-2513 in the 1998 EC Budget): payments per tonne for on-farm stockholding of local cheese.

POSEIDON (Budget item B1-2510): Payment per tonne of milk produced.

Stock-farming (1987-93) (Italy; Reg. 1944/81): output payments to dairy farmers.

Honey

Smaller Aegean islands (Reg. 2019/93) (Budget item B1-2513 in the 1998 EC Budget): payments per tonne for on-farm stockholding of honey.

Fibre Plants

Production aid for fibre flax and hemp (Budget items B1-1400 and B1-1402 in the 1998 EC Budget, correspondingly): production aid per hectare of harvested area.

On-farm storage (Budget items B1-1409 in the 1998 EC Budget): payments per tonne for on-farm storage of fibre.

Silkworms (Budget items B1-142 in the 1998 EC Budget): payments per box of eggs produced successfully.

Ananas: Payment per tonne of pineapple produced in the Açores (POSEIMA, Budget Item B1-1831).

Tobacco

Premiums for tobacco (1986-1992) (Budget item B1-171 in the 1998 EC Budget): Aid per kilo of raw leaf tobacco paid directly to growers who have signed a European cultivation contract, but member States may choose to pay it via the first processor. Since 1993, there is a maximum guarantee threshold for the whole EU set at 350 000 tonnes and the payment is included under B.2 below.

Conversion premium (Budget item B1-173 in the 1998 EC Budget): A three-year programme implemented in 1993 for the conversion of certain tobacco varieties to other varieties or agricultural products.

·        National expenditures

Agri-monetary compensation (UK): payments to compensate farmers for losses stemming from euro/sterling fluctuations (EU Reg. 2799/98, 2800/98).

Egg and wool schemes (UK): deficiency payments for wool and eggs, operated by the respective marketing Board. Discontinued in 1990/91 and 1994/95, respectively.

Sheep scheme (UK): payments to compensate UK sheep producers for the shortfall in returns from marketing sheep from in areas affected by the Chernobyl disaster in 1986.

Reimbursement of sugar excise tax to sugar beet producers (Lithuania, from 1999): budgetary expenditures.

Payments to high quality milk (Poland, from 2002): Payments to farmers per tonne of high quality milk.

Compensation payments for milk (Czech Republic until 2004): Payments per litre of milk sold to the market.

Deficiency payments (Hungary until 2004): Payments per tonne of marketed output of specific livestock products covering the difference between the guide price and the price paid by processors. Farmers have to apply for the payment with proof (by a selling contract) of the level of deliveries and the price obtained.

Storage assistance (Hungary): Payment for cereals stored until beginning of intervention buying-up.

Quality payments (Hungary until 2004): Payments per tonne of marketed output of a high quality product (beef, cow milk, sheep milk, goat milk, pigmeat, poultry). In 2001, quality payments were extended to some vegetable products: onions, pepper, potatoes for human consumption, tomatoes for industrial processing and sweet maize.

Pre-accession Direct Payments (Top-up) (Hungary): Payments per tonne of milk.

Assistance to milk producers (Hungary): Aid to processors conditional on paying a determined minimum price to producers.

Support for cultivation of flax (Latvia from 2004): payments per ton to realized flax fibre if purchase contract signed with primary processors.

2. Based on limited output

Arable crops

Production aid for oilseeds (1986-91) (Budget item B1-126 in the 1992 EC Budget): Until 1991, support to oilseeds (rapeseed, soyabeans and sunflower seed) was in the form of deficiency payments per tonne (combined with a system of intervention buying) paid through oilseed crushers. There was no ceiling to the total amount of payments which an individual farmer may receive, nor there was a limit for the EU as a whole to the total quantities of oilseeds eligible for payments. Maximum guaranteed quantities (MGQs), or production ceilings, were introduced in 1982/83 for rapeseed, 1984/85 for sunflower seed and 1987/88 for soyabeans.

Dairy

Payments per tonne of milk to compensate for change in quota for producers who had taken the non-marketing and conversion schemes during the late 1970s and early 1980s and who wished to return to dairying, after having ceased milk production for the five year required ("SLOM quota", see category B.1 above).

Compensation for temporary suspension of quotas (Budget items B1-2067 in the 1995 EC Budget); Compensation for non-allocation of milk quotas (temporary) (Budget items B1-2090 in the 1998 EC Budget); Purchase of milk quotas (Budget items B1-3803 in the 1995 EC Budget); Non-commercialisation of milk (Reg. 1078/77, EAGGF Guidance).

Dairy premium and supplement to dairy premium: Payment per tonne of milk quota introduced in 2004 to compensate producers for the reductions in interventions prices for butter and skimmed milk powder decided under the 2003 CAP reform. To be incorporated into the single farm payment scheme later on.

Olive oil

Production aid (Budget items B1-1210 in the 1998 EC Budget) and Schemes related to production of olive oil (Budget items B1-1211 in the 1998 EC Budget): production aid per tonne to olive producers.

Protein plants

Production aid for peas and field beans (Budget items B1-131 in the 1998 EC Budget): payments per tonne.

Production aid for lupines (Budget items B1-132 in the 1998 EC Budget): payment per hectare for harvested area (Reg. 1577/96). There is a maximum guaranteed area of 400 000 hectares.

Bananas

Production aid for bananas (Budget items B1-1508 in the 1998 EC Budget): payments per tonne to compensate EU producers for the loss of income that may arise from the application of the EU import arrangements for bananas following the Uruguay Round Agreement on Agriculture.

Tobacco

Premiums for tobacco (1993-onwards). see category B.1 above.

·        National expenditures

Scheme for the subsidisation of milk quota restructuring (Ireland): payment per litre to small dairy producers for purchasing additional quota. The eligibility criteria comprise: maximum quota, income ceiling (certain percentage of farm household income must come from agriculture), stock density (producers whose stock density is below 1.4 LU per hectare) and permanency (producers must remain in milk production until the end of the quota system or the year 2 000, whichever is the earlier).

Potatoes scheme (UK): deficiency payment to registered producers on authorised "quota" areas; operated by the Marketing Board and discontinued in 1993/94.

Dairy premium and Dairy premium supplement (Slovenia 2005): payment per animal.

C. Payments based on area planted/animal numbers

1. Based on unlimited area or animal numbers

Arable crops

Production aid for durum wheat (1986-93): per hectare payment for durum wheat planted in traditional production zones.

Other intervention for cereals (Budget item B1-1029 in the 1998 EC Budget): payment per hectare to durum wheat, barley, triticale, maize and sorghum planted in Portugal, of which 65% is financed by the EU.

Other intervention for rice (Budget item B1-1859 in the 1998 EC Budget) (1992-onwards): special measures to rice farmers in Portugal affected by the 1992/93 drought (Reg. 3653/90).

Land management measures to reduce the use of fertilisers: crop specific, per hectare payments under agri-environmental measures (EC Reg. 2078/92).

Organic farming: payments to producers for producing cereals with organic farming practices under EC Reg. 2078/92 and the RDR.

Sugar

POSEIDON (Reg. 89/687), (Budget item B1-1830 in the 1998 EC Budget): per hectare payments for cane sugar.

POSEIMA (Reg. 91/315), (Budget items B1-1831 in the 1998 EC Budget): per hectare payments for sugar beets.

Beef

Suckler cow premiums (1986-92) (Budget items B1-2120 in the 1998 EC Budget): payment per cow granted to any milk producer not supplying milk or dairy products for twelve months; and to any dairy farmer supplying milk or dairy products whose total individual milk reference quantity does not exceed 120 000 kg, provided that he keeps, for at least six consecutive months from the day on which the application is made, a number of suckler cows at least equal to 80% and of heifers at most 20% of the number for which the premium was requested. The transfer and temporary leasing of premium entitlement is permissible between producers. As of 1992, claims for the premium is subject to a maximum stocking density limit of 2.0 LU (livestock unit) per hectare devoted to forage for the animals for which a premium application is made (Reg. 3886/92).

Beef special premium (1986-92) (Budget items B1-2121 in the 1995 EC Budget): payment granted to male cattle within ceilings set at regional level on up to 90 animals per age bracket per calendar year and per animal (Reg. 805/68). Claims for the premium are subject to a maximum stocking density limit of 2.0 LU (livestock unit) per hectare devoted to forage for the animals for which a premium application is made.

Additional premiums for suckler cows (Budget items B1-2127 in the 1995 EC Budget): additional payment granted by EU member States (e.g. Portugal) not exceeding ECU 30.19 per cow, and with the first ECU 24.15 chargeable to the EAGGF Guarantee Section. It is applicable on holdings in regions regarded as lagging behind in their development and in member States specialising in suckler herds.

Suckler cow premium for mixed herds (Budget items B1-3804 in the 1995 EC Budget): see suckler cow premium above.

POSEIMA (Budget items B1-1831 and B1-2511 in the 1998 EC Budget): specific premiums for dairy cows; additional premium for fattening bovine animals (Reg. 91/315).

Sheepmeat and goat meat

Ewe and goat premiums (1986-92) (Budget items B1-2220 in the 1998 EC Budget): annual ewe payment calculated on the basis of income shortfall, when the EU average market price is less than the basic price. A technical coefficient representing the annual average lamb meat production from ewes producing heavy lambs is then applied to the income loss to determine the rate of ewe payment. A payment is also granted for goats in certain mountain areas and LFAs if goat-breeding is mainly intended for production. From 1993 marketing year an individual limit on premiums was introduced (Reg. 3567/92) and the payment is included under C.2 below. Limits are based on the number of eligible claims made in respect to the 1991 marketing year. Up to the end of the 1994 marketing year, the full payment was granted up to a limit of 1000 animals per producer in LFAs and 500 in the other areas; above these limits, 50% of the payment was granted. Rights to premium are transferable and may also be leased (Reg. 3567/92). Although the payment is not subject to any stocking density criteria, but the number of ewes upon which payment is claimed will be relevant when determining stock density levels for beef special premium and suckler cow premium claims.

Fixed ewe and goat premium in LFA and mountain areas (1986-92) (Budget items B1-223 in the 1998 EC Budget): since January 1991, producers in LFAs are eligible for a supplementary flat rate payment in addition to ewe premium. The payment of this supplement is subject to the same conditions as the payment of ewe premium.

Olive oil

Frost damage olive groves (EAGGF Guidance Fund, Reg. 122/88; Reg. 1654/86): budgetary expenditures on measures for replanting and converting olive groves damaged by frost.

Smaller Aegean islands (Reg. 2019/93), (Budget items B1-1833 in the 1998 EC Budget): per hectare payments for olive groves.

Wine

Smaller Aegean islands (Reg. 2019/93), (Budget items B1-1833 in the 1998 EC Budget): per hectare payments for vineyards.

Hops

(Budget item B1-181 in the 1998 EC Budget): payment per hectare based on historic average planted area.

Potatoes

POSEIMA (Reg. 91/315), (Budget items B1-1831 and B1-2511 in the 1998 EC Budget) and POSEICAN (Reg. 91/314), (Budget item B1-1832 in the 1998 EC Budget): per hectare payments for potatoes.

·        National expenditures

Suckler cow premiums (France, Germany, Greece, Italy, Spain and Austria, 1986-92): see above.

Ewe and goat premiums (Austria, Greece): see above

Special premium for male cattle (Austria): payment per head of animal.

Premium for keeping farm animals (Austria): payment per head of animal.

Premium for oilseeds and protein plants (Austria): payment per hectare of planted area in oilseeds.

Other premia (Austria): Other payments.

Frost damage aid (Austria): payment per hectare of affected area.

Drought damage aid (Austria): payment per hectare of affected area.

Disaster payments (Denmark, Finland, France, Italy, Luxembourg and Spain): payments to cereal producers to compensate for crop damage due to natural disaster. In Finland, 50% is allocated to crop area payments and 50% to grass (E1).

Aid to pig producers (Ireland): payments to pig producers affected by fires at the border Ireland/Northern Ireland in 1998. The scheme contributes towards interest costs where farmers have agreed debt restructuring arrangements with banks.

Compensation for damage caused by flooding (Finland): Disaster payment

Exceptional assistance to young cattle breeder (France): Payments per cattle targeted to the most vulnerable farms, in particular younger farmers.

Stabilisation programme for wine, 1986-87 (Germany): Payment per hectare of vineyards to stabilise the domestic market. Calculated on a fiscal year basis.

Adjustment programme for the dairy industry, 1992-94 (Germany): Payment per cow to facilitate structural adjustment in the East German dairy industry after reunification. Calculated on a fiscal year basis.

Disaster Payments (Netherlands, Portugal): Direct payments.

Harvest losses, 1998 (Netherlands): Direct payments.

Special aid for cereals (Portugal): payment per hectare of cereals (except maize and rice).

Premium for indigenous races of cattle (Portugal): payment per head (see above).

Dried fruits (Spain): per hectare payments to dried fruit producers affected by erosion or drought.

Organic production (Sweden): in 1989 a temporary compensation scheme to farmers for acreage converted to organic production and for acreage continuing under organic production. Payments per hectare (arable land or pasture) granted for a three year period, although production must be carried out during six years, for acreage cultivated with price support regulated crops, except for the first year when pasture and ley on arable land was included. As data do not allow a distinction between crops and pasture, 50% is allocated to this category and 50% to category E1.

Traditional, environmentally friendly cultivation of local varieties of brown beans (Sweden): per hectare payments to compensate for cultivation of brown beans in the traditional cultivated area.

Conservation of local breeds threaten by extinction (Sweden): payment per livestock unit to improve the conditions for continued breeding in order to conserve the genetic resources of domestic animals as an important contribution to biodiversity

Support for reindeer husbandry farms (Sweden): price support for reindeer meat, compensation for animals lost to predators, and furthering reindeer husbandry. 

Over Thirty Month Scheme (OTMS) (United Kingdom): Payment per head introduced in May 1996 as a market support measure to remove cattle from the market and pay compensation to producers for cattle aged over thirty month that could no longer enter the food chain.

Support to bee keeping (Czech Republic, Sweden): Payment per colony of bees.

Payments for integrated production of fruits and vegetables (Czech Republic): National expenditures.

Payments for catch crops (HRDP) (Czech Republic): Payment per hectare of catch crops (environmental protection) implemented within the Rural Development Plan.

Payments for energy plants (Czech Republic, National aid scheme, from 2005): Payment per hectare of specific energy plants.

Payments for poppy seed (Czech Republic, National aid scheme, from 2004): Payment per hectare of poppy seed supporting harvesting which ensures safety as regards narcotic and psychotropic substances.

Ad hoc payments (Estonia, 2004): per hectare payments to crop producers to compensate losses due to natural disasters.

Pre-accession Direct Payments (Hungary until 2004): Payment on all agricultural land; Payment per head for suckler cows; and Payment per head for ewes.

Area-based payment for crop production (Hungary, from 1999 to 2004): payments per hectare of specific crops.

Payments to the purchase and breeding of animals (Hungary, from 1995). Payments per head.

Disaster payments (Hungary): Payments to compensate overall revenue losses from disasters.

Payments for relief from damage caused by wild animals (Hungary): Direct payments.

Payments for high quality crops (Latvia, 2004): payments per hectare.

Pedigree cattle payments (Latvia, 2004): headage payments.

Area payments (Latvia, 2004): payments per hectare for vegetables, rapeseed, flax.

Headage payments (Latvia, 2004): headage payments for development of dairy farming.

Payment for sawn area (Latvia, 2004): area payments.

Disaster losses compensations (Lithuania, 2004): per hectare payments.

Payments for natural disaster relief and assistance (Poland, since 1997): budgetary expenditures.

Area aid (Slovenia from 2004): payment per hectare for seeds, sugar beet.

Headage payments (Slovenia from 2004): payments per animal for horses, cattle, pigs, sheep.

Payments per hive for bee keepers (Slovenia from 2004): budgetary expenditures.

Complementary National Direct Payments CNDP (Czech Rep., Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Rep. from 2004): payments per hectare or animal numbers (so called top-up payments) for hop, sheep and goat meat (until 2004), suckler cows (until 2004), cattle, high quality seeds for fodder crops (until 2004), flax and starch potatoes in the Czech Republic; arable crops, cattle and ewes in Estonia; for arable crops, oilseeds, rice; tobacco, and bulls in Hungary; for seeds, dairy cows, pigs, ewes, suckler cows in Latvia; for grains, rapeseed, starch potatoes, fiber flax, suckler cows, bulls, slaughtered adult cattle, ewes in Lithuania; hop, tobacco, crops on arable land, sheep and goat meat, and suckler cows in the Slovak Republic.

2. Based on limited area or animal numbers

Arable crops

Compensatory payments (1993-onwards) (Budget item B1-104 and B1-105 in the 1998 EC Budget): payments per hectare, calculated on historic regional yields (1986-90), granted on condition that producers set aside a defined percentage of the eligible land (with the exception of small producers). Introduced by the 1992 CAP reform to compensate cereal, oilseed and protein crop (peas, field pea beans, sweet lupins and non-textile flax seed) producers for the reduction or abolition of institutional prices (Reg. 1765/92).

Set-aside linked with per hectare aid (1993-onwards) (Budget item B1-1060 in the 1998 EC Budget): payments for set-aside area related to per hectare compensatory payments, determined by multiplying the fixed amount per tonne by the regional cereals reference yields (average yield of the 1986-90 period) and the area set-aside. This area may either be used for non-food purposes or taken out of production, with the possibility of rotation, afforested or used for non-agricultural purposes.

Supplementary aid for durum wheat (1994-onwards) (Budget item B-1055 in the 1998 EC Budget): supplementary payment per hectare to durum wheat producers in certain economically disadvantaged regions of Italy, Spain, Greece, France, Austria and Portugal. There is a limit to a total area eligible for the payment, which varies among member States.

Encouragement for growing traditional cereal (1992-94), (Budget item B1-3801 in the 1994 EC Budget): payment per hectare of cereal cultivated under traditional farming practices.

Other aid and assistance for arable crops (Budget item B1-1079 in the 1996 EC Budget) (refers to oilseeds); Direct payments to oilseeds producers (1993) and Other interventions for oilseeds (1992) (Budget item B1-128 in the 1992 EC Budget) (payments per hectare for the 1992/93 marketing year).

Payment to arable crops from 2005: payment per hectare of crops including former compensatory and set-aside payments. Quality premium for durum wheat from 2004: payment per hectare in traditional production zones provided to farmers who are using a certain quantity of certified seeds of selected varieties.

Payments to protein crops from 2004: payment per hectare of protein crops for a maximum guaranteed area of 1.4 million hectares.

Payments to energy crops from 2004: payment per hectare outside set-aside provisions for a maximum guaranteed area of 1.5 million hectares.

Payments to starch potatoes from 2004: payment per tonne of starch potatoes.

Regional payment to crops (drying aid) from 2004: supplementary payment per hectare of crops to farmers in Nordic regions for drying aid.

Area payment for nuts from 2005: payment per hectare of nuts for a maximum guaranteed area of 800 000 hectares divided into fixed national guaranteed areas for almonds, hazelnuts, walnuts, pistachios and locust beans.

Rice

Per hectare payments for rice (Budget item B1-1858 in the 1998 EC Budget): payments introduced in 1997/98 marketing year to compensate rice producers for a 15% cut in the intervention price. They are similar to the compensatory area payments for cereals, are based on historic national yields for the years between 1993/94 to 1995/96 and are subject to a ceiling on the area.

Beef

Suckler cow premiums (1993-onwards) (Budget items B1-2120 in the 1998 EC Budget): see category C.1 above

Additional premiums for suckler cows (1993-onwards) (Budget items B1-2121 in the 1998 EC Budget): see category C.1 above

Beef special premium (1993-onwards) (Budget items B1-2122 in the 1998 EC Budget): see category C.1 above

Deseasonalisation premiums (Budget items B1-2123 in the 1998 EC Budget): payments per animal to producers for withholding supplies at certain times of the year. When the number of male bovines slaughtered in a Member state between 1 September and 30 November exceeds 35% of the annual slaughtering of male bovines, an additional premium is granted. It is payable on degressive basis starting at ECU 72.5 per animal and is payable on animals that have already received the beef special premium and are slaughtered between 1 January and 30 April. By the end of the payment period the premium declines ton ECU 18.11. In practice this premium has only operated in Ireland and Northern Ireland.

Extensification premiums (Budget items B1-2125 in the 1998 EC Budget): complementary payment for producers with a stocking density of less than 1.5 LU per hectare, for whom the special and/or suckler cow premium are increased by ECU 36.2 or by ECU 52 if stocking is at less than 1 LU per hectare.

POSEIDOM (Reg. 89/687): complementary payments for suckler cows (Budget item B1-2510 in the 1998 EC Budget).

Sheepmeat and goat meat

Ewe and goat premiums: from 1993-onwards. See category C.1 above

Fixed ewe and goat premium in LFA and mountain areas: from 1993-onwards. See category C.1 above.

Fruits and vegetables

Specific measures (Budget items B1-1517 in the 1998 EC Budget): payment per hectare for asparagus planted for processing. It is a temporary scheme for three years, limiting to 9 000 hectares.

Wine

Restructuring and varietal conversion system for wine (Budget B1-165 item in the 2001 EC Budget): Established with the Agenda 2000 reform to compensate for the losses in receipts due to restructuring of vineyards to improve the quality of wine as well as a contribution to the cost of restructuring. The former part is paid per hectare, there is a limit of 54 000 hectare per wine year for the whole EU and the total budget is euro 400 million. Concerning the latter part, 50% of the costs is financed by the EU (75% in the Objective 1 areas). 50% allocated to C2 and 50% to E3 (Payments based on fixed inputs).

Compensatory allowances (Reg. 2328/91, Art. 19): payments per animal to farmers of dairy cows, cattle, sheep, goats and equine animals. In LFAs other than mountainous (Art. 3.3), the payment is limited to a maximum of 20 dairy cows per holding and 1.4 LU per forage hectare of the total forage area of the holding. The scheme also provides for an aid per hectare for crop production, excluding the area used for animal feed, durum wheat, fruit trees (apples, pears, peaches), vineyards and sugarbeet and, in practice, wheat (yields lower than 2.5 tonnes per hectare are eligible). Applicants must have a holding with at least 3 hectares of utilised agricultural land and undertake to continue farming for at least 5 years.

Less Favoured Areas (LFAs) -- Title II (Reg. 268/75): payments per hectare to farmers who farm a minimum area of land and undertake to pursue their farming activity in a LFA for at least five years from the first payment.

 

·        National expenditures

Compensatory allowances / Less Favoured Areas (Austria, Belgium, Czech Rep. (see below), Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Poland, Portugal, Slovak Rep., Slovenia, Spain, Sweden and UK): see above.

Suckler cow premiums (France, Germany, Greece, Italy, Portugal, Spain, UK, Austria, Finland and Sweden): see above.

Other cattle premium (France): Headage payment to calves and adult cattle.

Ewe and goat premium (France): Payment per ewe and per goat.

Payments to other commodities (France): Headage payments.

Disaster payments (Greece): payments to compensate for production losses of specific commodities due to natural disaster. The compensation covers only a certain percentage (ranging from 50%-75%) of total loss and there is a limit on the total payment per hectare.

Agri-monetary compensation (Sweden): Additional area payment for crops.

Crop damage aid (Finland): payments to cereal producers to compensate for crop damage due to natural disaster. 50 % allocated to crop payments, 50 % to grass (E1).

Flood damage aid (Finland): disaster payment.

Disaster payments (Netherlands): payments to compensate for production losses of pigs due to natural disaster.

Deseasonalisation premium (UK): see above.

Regional assistance programmes (Germany): Regional expenditures. Data available from 2000. No specific information. Provisional classification. Calculated on a fiscal year basis.

Plant nutrient leaching (Sweden): Per hectare payment for farmers in order to encourage them to draw up cropping plans. It is being merged with other programs and may not appear as a separate payment again.

Payments for animals on extensively used pastures (Czech Republic until 2004, HRDP – agri-environmental payment): Payments for cattle, sheep, goats and horses rearing on pastures (at least 4 months a year). A payment per Livestock Unit (LU) is provided if the livestock density remains bellow 1.4 LU per hectare of pasture land. From 2005 replaced by grassland maintenance programme.

Grassland maintenance (Czech Republic from 2005, HRDP – agri-environmental payment): Payments per hectare of meadow maintained according to standard conditions; without application of fertilisers; without application of fertilisers and first mowing after 15 July; without application of fertilisers and maintenance of 6 to12 m wide belts after the first mowing; or per hectare of pasture, maintained according to standard conditions, with grazing livestock density between 0.5 – 1.25 LU per hectare or without application of fertilisers, with grazing livestock density between 0.4 to 1.05 LU per hectare.

Payments for arable land (Czech Republic Top-up 1.A): 2004: Payments of CZK 2 500 per hectare of arable land are provided to farms with minimum 10 ha of arable land which set-aside min. 5% and max. 10% of their arable land. The set-aside arable land can be used for production of rape seed for methylester production, plants for green fertilising, energetic herbs, hemp and flax (in case of flax cultivation on set-aside arable land the payment is of CZK 7 000 per hectare). 2005: Payment per hectare of arable land seeded to specific crops (grains, oilseeds, leguminous, silage and green fodder, hemp for fibre, linseed.

Support to Less Favoured Areas (Czech Republic, HRDP): Compensatory payments per hectare of grassland in agricultural land LFAs, areas with specific limitations, National Parks and Protected Landscape zones.

Headage payment (Estonia, from 2004): payment per animal for milk cows, sows and ewes.

Agri-environment (Estonia from 2004):  payments per hectare to farmers under EU agri-environmental measures to reduce the use of variable inputs such as fertilisers and pesticides.

Disaster payments (Hungary, from 1997): Payments to compensate overall revenue losses from disasters (floods) not covered by insurance.

Payments for cattle (Hungary, from 2005, Top-up): Headage payments for beef cattle.

Payments for selected crops on arable land (Hungary, from 2005, Top-up): Payment per hectare of specific crops on arable land (grains, rice, tobacco).

Disaster payments for crops (Slovak Republic): Payments compensations for losses due to severe floods and droughts.

Area and headage payments (Slovenia, 2004): payments per hectare of cereals, oilseeds, protein crops, energy crops and nuts, and payments per head (Suckler cow premium, Special beef premium, Slaughter premium, Extensification premium Additional payment to beef and ewes, Ewe and goat premiums) implemented as equivalent EU funded area and headage payments.

Special Marketing Policy Programme for Maltese Agriculture (SMPPA) (Malta, from 2004): payment per hectare for tomatoes, vegetable, fruits, wine. Payment per animal for milk, pigs, poultry.

Special Aid Programme for potato producers (Malta from 2004): Payment per hectare.

Ad hoc measure for providing specific temporary support for full time farmers (Malta from 2004): payment per hectare, Guarantee section.

            D. Payments based on historical entitlements

1. Based on historical plantings/animal numbers or production: none

2. Based on historical support programmes

Single Farm Payment Scheme (SFP) from 2005: Payment per hectare based on historical reference amounts of premium for most crop and livestock commodities received during the period 2000-02. The payment can be established at the farm level or at the regional level.

Single area payment scheme (SAPS) (Cyprus, Czech Rep., Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Rep., from 2004): per hectare payments applied to the whole agricultural area with a fixed rate, minimum area is 1 hectare.

Support to Less Favoured Areas (HRDP) (Slovak Republic): Specific rates of payments per hectare of agricultural land in Less Favoured Areas (mountainous and hilly areas), and areas with specific limitations (National Parks and Protected Landscape zones).

·        National expenditures

National support to Northen Sweden (Sweden) and price premiums (Austria, until 1999): degressive transitional payments to producers to compensate for the decline in support following the accession of these countries to the EU.

National aid (Finland): Transitional payments to producers to compensate for the decline in support following the accession to the EU. The support is paid as additional prices, on the basis of the area and number of animals. The national measures include northern aid, national aid for Southern Finland, national supplement to environmental aid (from 2004 onwards, this was formerly national aid for crop production), national supplement to LFA (from 2005 onwards), and certain other measures.

Socio-structural income compensation (Germany): payment to farmers independent of their production decision that was introduced in place of previously existing tax concessions. The programme was in operation during 1989-94.

E. Payments based on input use

1.         Based on use of variable inputs

Feed and seed payments

Production aid for dried fodder (Budget items B1-130 in the 1998 EC Budget): maximum guaranteed quantities were introduced in 1995 (Reg. 603/95), broken down into national guaranteed quantities, allocated to the EU member States on the basis of their average production in the reference marketing years 1992/93 and 1993/94. Where the MGQs are exceeded, the aid is reduced.

Silage (Budget items B1-1047 and B1-1058 in the 2001 EC Budget): payments per hectare of feed produced for silage and used on-farm under the compensatory payments for arable crops (see above). With the Agenda 2000 CAP reforms, grass silage is eligible for the arable crops are payment only in Sweden and Finland since is not possible to grow maize silage in these countries.

Seeds (Budget item B1-180 in the 1998 EC Budget). payments to seed producers.

Conversion of arable land to grassland and forage production measures: payments to convert arable land on feed production under agri-environmental measures (EC Reg. 2078/92),.

Agri-monetary aid: Rebates in insurance premia against labour accidents to compensate losses in CAP payments for agri-monetary reasons (see B.1. As disaggregated data are not available, information from EU Members was used to allocate the payments to different categories: 35% are allocated to this category, 45% are allocated to B.1, 10% to M and 10% to L.

Setting-up of young farmers (Reg. 2328/91, Art. 10 and 11; Reg. 1257/99, Art. 8): payments may comprise a single premium up to the maximum eligible amount of euro 25 000 and an interest subsidy on loans taken on with a view to covering the costs arising from setting up.

·        National expenditures

Prime à l’herbe (maintaining extensive grassland) (France): payments per hectare for the maintenance of grassland areas on extensive livestock farming. Farmers have to fulfil the following obligations for 5 years and for a minimum of 3 hectares of grassland and 3 LU per holding: livestock intensity rate per hectare less than 1 LU per hectare; maintain the permanent grassland area (for at least 3 years as for temporary grassland); harvest the grass; and upkeeping the area under the scheme.

Fodder transport assistance (France since 2004): Budgetary expenditures. Nitrate Sensitive areas (UK): payments to nitrate leaching either through conversion of arable land to extensive grass or through extensification of existing intensively managed grass. The scheme is voluntary.

Promotion of catch crops (Sweden): per hectare payments to compensate for the production of catch crops to reduce nitrogen leakage.

Support for Landscape Conservation and Biodiversity (Sweden): per hectare payments for hay-making and grazing land.

Open Landscape (Sweden): Maintenance of an open landscape in Northern Sweden and in the forest regions. Payments for the maintenance of the open agricultural landscape through supporting extensive farming practices especially on natural pasture and in production of hay and silage from grass. The payment is determined by the relation between grassland and livestock at the farm. 75 % allocated to this category and 25 % to F3.

Organic Production (Sweden): half of this programme is allocated to pasture and included in this category (see category C1).

Permanent Grasslands (Sweden): aim to restrict nitrogen leaching, intensive agriculture areas, minor support, protective zones, buffer along rivers, only extensive grazing, paid per hectare, several restrictions, no pesticides, no fertilisers, only harvest after a certain date, can not grow anything else but grass.

Grazing Land, Mowed Meadows (Sweden): From spring 1998.

Semi-natural grazing land (Sweden): Budgetary expenditures.

Long leys (Sweden): No stringent conditions/restrictions attached to the payments. No pesticides used and the leys must be kept for two years. Paid per hectare.

Catch Crops (Sweden): per hectare payments to compensate for the production of catch crops to reduce nitrogen leakage

Setting-up of young farmers (Austria, Denmark, France, Greece, Ireland, Italy, Hungary, Latvia, Luxembourg, Poland from 2004, Portugal, Sweden, Lithuania from 2005, Slovenia from 2005): see above

Other installation assistance (France): Interest subsidy on loans to facilitate the transmission of farms.

Fuel tax rebates (Austria, Czech Republic, Denmark, Estonia, France, Germany until 2000, Greece, Hungary, Latvia, Lithuania, Netherlands, Poland in 1993, Portugal, Slovak Republic, Slovenia and Spain until 1989, UK since 1990): value of tax exemptions on diesel fuel for farmers relatively to the standard rate taxes on fuel. Calculated in a budget year basis.

Reduction in social security contributions (France): 50% of the value of reductions in farmers’ National Insurance contributions relative to the standard rate.

Green fallow (Germany): payment for set aside land on which farmers are allowed to grow fodder. The programme was in operation during 1987-88.

Energy savings (Germany): payment for measures that reduce energy consumption. The programme was in operation during 1995-96.

Fertiliser subsidy (Greece until 1991, Poland): national programme.

Insurance (Austria, Belgium, Hungary, Netherlands, Spain): payments to finance the difference between the price of the insurance received by the private insurance companies and the price paid by the farmer. Includes the capital losses of ENESA and the cost of reinsurance in Spain.

Crop insurance (Luxembourg, Portugal): national programme.

Animal Slaughter insurance (Luxembourg): national programme.

Electricity subsidy (Portugal): national programme.

Interest concessions (Hungary, Latvia, Lithuania, Poland, Portugal): national programme.

Water subsidies (Slovak Republic): Budgetary expenditures to finance part of the expenditure for irrigation water.

Irrigation subsidies (Spain): national expenditures on payments to finance the activities of irrigation associations and payments to public enterprises in charge of the improvement of irrigation infrastructure (50% EU co-financing).

Subsidies for storing and production of wine alcohol (Spain): Payment per liter of alcohol for wine production (50% EU co-financing).

Support to liming (Estonia): budgetary expenditures to reduce the costs of liming.

Tax concession (Estonia): income tax concession provided to small family farms estimated by the Ministry of Agriculture.

Agricultural employment (Hungary): Payments to reduce the costs of agricultural employment, financing a part of Public Health Insurance fee.

Capital aid (Hungary): Budgetary expenditures for financing farmers credit in case of bankruptcy.

Seeds (Hungary): Payments for high quality seeds.

Europe Agricultural Plan+ credit programme (Hungary from 2005): Credits extended to agriculture to finance purchase of inputs.

Preservation of genetic resources of farming animals (Estonia, Latvia from 2004, Lithuania from 2005): payment per animal for preservation of genetic resources of farming animals.

Pedigree and breeding (Latvia from 2004): budgetary expenditures for supporting pedigree and breeding in dairy farming, beef, pig, horse, sheep and goat production.

Purchase of insemination material abroad (Latvia): budgetary expenditures.

Support for herd improvement (Latvia, Lithuania): budgetary expenditures.

Support for seed production (Latvia from 2004): budgetary expenditures, payments for seeds produced and sold if seeds have been certified (EU programme).

Compensation due to national disaster (Latvia from 2004): budgetary expenditures.

Land reclamation (Latvia 2004): budgetary expenditures.

Elite seeds (Lithuania): budgetary expenditures on subsidy for purchasing high quality seeds.

Compensation of on-farm storage costs (Lithuania): budgetary expenditures.

Payments for strawberry planted (Slovenia): budgetary expenditures.

Area aid for potato seeds (Slovenia from 2005): payment per hectare.

Conservation of indigenous species (Malta, from 2004): Payment per animal for maintaining biodiversity by conserving indigenous species.

2.         Based on use of on-farm services

Pest and diseases control

Measures to control epizootic diseases (B1-253 in the 1998 EC Budget).

Disease eradication and monitoring programmes (Budget item B2-5100 in the 1998 EC Budget).

Other measures in the veterinary field (Budget item B2-5101 in the 1998 EC Budget).

Plant health measures (Budget item B2-5102 in the 1998 EC Budget).

Veterinary measures for most remote regions (Budget item B2-5105 in the 1998 EC Budget).

Funds for emergency veterinary measures (Budget item B2-5106 in the 1998 EC Budget).

Transhumance (B1-250 in the 1998 EC Budget): payments per head for the transhumance of sheep, goats and cattle in Greece.

Extension services

Training and Demonstration projects: budgetary expenditures under agri-environmental measures (EC Reg. 2078/92).

Extension (Reg. 797/85): agricultural advisory services (Reg. 270/79) and pilot and demonstration projects, technical assistance, studies and dissemination results (Reg. 797/85, Art. 22).

·        National expenditures

Pest and disease control (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Poland, Portugal, Slovenia, Spain, Sweden, UK)

Control of mastitis and other veterinary measures (Denmark until 2004): Payments to improve the quality of milk and dairy products and to remove the extra costs of veterinary treatment for farmers on islands without local veterinarians.

Surveillance of Transmissible Spongiform Encephalopathy, TSE (Denmark): Payments to producers to compensate the costs of running a programme of BSE testing and a programme of surveillance of TSE.

National Beef Assurance Scheme (Ireland): Budgetary expenditures from operating an animal identification and tracing system, developing and enforcing standards through a registration and approval system. Bovine tuberculosis and Brucellosis Eradication (Ireland): Budgetary expenditures on control disease services in favour of beef producers and distinct from above program of general disease control. Expenditure is net of farmer’s contributions. 20% EU co-financing.

Farmers with income problems (France): payments to farmers to finance the analysis and monitoring of farm management and facilitate pluriactivity.

Information, education and demonstration projects (Belgium, Netherlands, Sweden) concerning biodiversity in the agricultural landscape.

Dioxin compensation payments (Belgium): payments granted in 1999 and 2000 to beef and veal, pigmeat and poultry farmers to compensate for losses due to the dioxin crisis.

Land consolidation programme (Denmark until 2002, France): payments to improve the physical structure of farm holdings through land consolidation. Promille and Production levy funds (Denmark): payments for specific agricultural activities including sales promotion, research, production development, advising, training, prevention of diseases. 50% is allocated to this category. 25% to the categories I and M.

Extension and advisory services/technical assistance (Czech Republic, Denmark until 2003, Estonia from 2004, France, Germany, Greece, Hungary, Ireland, Italy, Latvia from 2004, Lithuania from 2004, Luxembourg, Netherlands, Poland, Portugal, Slovenia, Sweden): Expenditures on extension and advisory services. In Ireland, 30% of total spending on Teagasc, 50% going to research (GSSE-I) and 20% to training (GSSE-J). In Slovenia, 50% of expenditures to the agricultural extension service.